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Policy Analysis Concepts and Practice

Policy Analysis : Concepts and Practice

Summary

For one-semester, senior/graduate-level courses in Introduction to Policy Analysis, Fundamentals of Public Policy, Policy Analysis, Public Policy, Public Finance, Cost-Benefit Analysis, and Government and Business. This introduction explores both the hows and whys of the practices of public policy. The text provides reality-based practical advice about how to actually conduct policy analysis and demonstrates the application of advanced analytic techniques.

Table of Contents

List of Figures

v

(1)

List of Tables

vi

(1)

Preface

vii

(1)

Acknowledgments

viii

PART I: INTRODUCTION

1

(57)

1 Preview: The Canadian Salmon Fishery

1

(26)

Increasing the Social Value of the B.C. Pacific Salmon Fishery

3

(23)

Postscript and Prologue

26

(1)

2 What is Policy Analysis?

27

(16)

Policy Analysis and Related Professions

28

(7)

Policy Analysis as a Profession

35

(4)

A Closer Look at Analytical Functions

39

(2)

Basic Preparation for Policy Analysis

41

(2)

3 Toward Professional Ethics

43

(15)

Analytical Roles

44

(3)

Value Conflicts

47

(9)

Ethical Code or Ethos?

56

(2)

PART II: CONCEPTUAL FOUNDATIONS

58

(195)

4 Efficiency and the Idealized Competitive Model

58

(16)

The Efficiency Benchmark: The Competitive Economy

59

(2)

Market Efficiency: The Meaning of Social Surplus

61

(12)

Conclusion

73

(1)

5 Rationales for Public Policy: Market Failures

74

(42)

Public Goods

74

(20)

Externalities

94

(6)

Natural Monopoly

100

(7)

Information Asymmetry

107

(8)

Conclusion

115

(1)

6 Rationales for Public Policy: Other Limitations of the Competitive Framework

116

(18)

Thin Markets: Few Sellers or Few Buyers

116

(1)

The Source and Acceptability of Preferences

117

(4)

The Problem of Uncertainty

121

(5)

Intertemporal Allocation: Are Markets Myopic?

126

(4)

Adjustment Costs

130

(2)

Conclusion

132

(2)

7 Rationales for Public Policy: Distributional and Other Goals

134

(25)

Social Welfare beyond Pareto Efficiency

134

(7)

Substantive Values Other Than Efficiency

141

(5)

Instrumental Values

146

(4)

Some Cautions in Interpreting Distributional Consequences

150

(8)

Conclusion

158

(1)

8 Limits to Public Intervention: Government Failures

159

(37)

Problems Inherent in Direct Democracy

160

(6)

Problems Inherent in Representative Government

166

(17)

Problems Inherent in Bureaucratic Supply

183

(7)

Problems Inherent in Decentralization

190

(5)

Conclusion

195

(1)

9 Correcting Market and Government Failures: Generic Policies

196

(57)

Freeing, Facilitating, and Simulating Markets

197

(8)

Using Subsidies and Taxes to Alter Incentives

205

(17)

Establishing Rules

222

(13)

Supplying Goods through Nonmarket Mechanisms

235

(9)

Providing Insurance and Cushions

244

(8)

Conclusion

252

(1)

PART III: DOING POLICY ANALYSIS

253

(164)

Landing on Your Feet: How to Confront Policy Problems

253

(43)

Analyzing Yourself: Meta-Analysis

253

(2)

The client Orientation

255

(1)

Steps in the Rationalist Mode

256

(2)

Problem Analysis

258

(17)

Solution Analysis

275

(15)

Communicating Analysis

290

(4)

Meta-Analysis Once Again: Combining Linear and Nonlinear Approaches

294

(1)

Conclusion

295

(1)

Appendix 10A: Gathering Information for Policy Analysis

296

(15)

Document Research

297

(8)

Field Research

305

(3)

Putting Document Review and Field Research Together

308

(2)

The Most Important Component: Think!

310

(1)

Goals/Alternatives Matrices: Some Examples from CBO Studies

311

(20)

Setting Out Broad Options: Auctioning Radio Spectrum Licenses

312

(3)

Quantitive Predictions: Restructuring the Army

315

(5)

Comparing Proposed Alternatives: Launching Digital Television

320

(7)

Combining Policy Alternatives: Improving Water Allocation

327

(3)

Conclusion

330

(1)

12 Benefit-Cost Analysis

331

(51)

A Preview: Increasing Alcohol Taxes

332

(1)

Identifying Relevant Impacts

333

(2)

Monetizing Impacts

335

(16)

Discounting for Time and Risk

351

(10)

Choosing Among Policies

361

(3)

An Illustration: Taxing Alcohol to Save Lives

364

(14)

Conclusion

378

(1)

Appendix 12A: Measuring Consumer Surplus in the Presence of Income Effects